Rev. Rul. 99-2, 1999-2 I.R.B. 5.
Internal Revenue Service
Revenue Ruling
FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL
LONG-TERM RATE,
AND
THE LONG-TERM EXEMPT RATE
Released:
December 22, 1998
Published:
January 11, 1999
Section 1274. - Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property
Section 1288. - Treatment of Original Issue Discount on Tax-Exempt Obligations
Section 3121. - Definitions, 26 CFR 31.3121(a)--1: Wages.
Section 6302. - Mode or Time of Collection, 26 CFR 1.6302--2: Use of Government depositaries for payment of tax withheld on nonresident aliens and foreign corporations. 26 CFR 31.6302--1: Federal tax deposit rules for amounts withheld under the backup withholding requirements of section 3406 for payments made after December 31, 1992. 26 CFR 31.6302--2: Federal tax deposit rules for amounts withheld under the Railroad Retirement Act (R.R.T.A.) attributable to payments made after December 31, 1992. 26 CFR 31.6302--4: Federal tax deposit rules for withheld income taxes attributable to nonpayroll payments made after December 31, 1993. 26 CFR 31.6302(c)--3: Use of Government depositiaries in connection with tax under the Federal Unemployment Tax Act. 26 CFR 40.6302(c)-- 1: Use of Government depositiaries.
Section 6656. - Failure to Make Deposit of Taxes, 26 CFR 301.6656--1: Penalty for underpayment of deposits.
Section 7520. - Valuation Tables
Section 7872. - Treatment of Loans With Below-Market Interest Rates
Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for January 1999.
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.
Are payments received by individuals with respect to certain work activities performed in state programs under part A of title IV of the Social Security Act, as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ("Temporary Assistance for Needy Families") wages for purposes of federal employment taxes.
Guidance is provided regarding how a taxpayer may designate the application of its federal tax deposits for a particular return period in order to minimize the failure-to-deposit penalty with respect to deposits required to be made after January 18, 1999.
The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of January 1999.
Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for January 1999.
This revenue ruling provides various prescribed rates for federal income tax purposes for January 1999 (the current month.) Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. Finally, Table 6 contains the deemed rate of return for transfers made during calendar year 1999 to pooled income funds described in section 642(c)(5) that have been in existence for less than 3 taxable years immediately preceding the taxable year in which the transfer is made.
REV.
RUL. 99--2 TABLE 1
Applicable Federal Rates (AFR) for January 1999
Period
for Compounding
Annual Semiannual Quarterly Monthly
Short-Term
AFR 4.57%
4.52% 4.49% 4.48%
110%
AFR 5.03%
4.97% 4.94% 4.92%
120%
AFR 5.49%
5.42% 5.38% 5.36%
130%
AFR 5.97%
5.88% 5.84% 5.81%
Mid-Term
AFR 4.64%
4.59% 4.56% 4.55%
110%
AFR 5.11%
5.05% 5.02% 5.00%
120%
AFR 5.59%
5.51% 5.47% 5.45%
130%
AFR 6.06%
5.97% 5.93% 5.90%
150%
AFR 7.01%
6.89% 6.83% 6.79%
175%
AFR 8.19%
8.03% 7.95% 7.90%
Long-Term
AFR 5.21%
5.14% 5.11% 5.09%
110%
AFR 5.73%
5.65% 5.61% 5.58%
120%
AFR 6.27%
6.17% 6.12% 6.09%
130%
AFR 6.79%
6.68% 6.63% 6.59%
REV.
RUL. 99--2 TABLE 2
Adjusted AFR for January 1999
Period
for Compounding
Annual Semiannual Quarterly Monthly
Short-term adjusted AFR 3.08%
3.06% 3.05% 3.04%
Mid-term adjusted AFR 3.86%
3.82% 3.80% 3.79%
Long-term adjusted AFR 4.70%
4.65% 4.62% 4.61%
REV.
RUL. 99--2 TABLE 3
Rates Under Section 382 for January 1999
Adjusted federal long-term rate for the current
month
4.70%
Long-term tax-exempt rate for ownership changes during the current month 4.70%
(the highest of the adjusted federal long-term rates for the current
month and the prior two months.)
REV.
RUL. 99--2 TABLE 4
Appropriate Percentages Under Section
42(b)(2) for January 1999
Appropriate percentage for the 70% present value low-income
housing 8.15%
credit
Appropriate percentage for the 30% present value low-income
housing 3.49%
credit
REV.
RUL. 99--2 TABLE 5
Rate Under Section 7520 for January 1999
Applicable federal rate for determining the present value of an annuity, 5.6%
an interest for life or a term of years, or a remainder or reversionary
interest
REV.
RUL. 99--2 TABLE 6
Deemed Rate for Transfers to New Pooled Income Funds
During 1999
Deemed rate of return for transfers during 1999 to pooled income
funds 6.8%
that have been in existence for less than 3 taxable years
Rev. Rul. 99-2, 1999-2 I.R.B. 5.